Capital Market History Shows Us That the Average Return Relationship

question 36

Multiple Choice

Capital market history shows us that the average return relationship from lowest to highest between securities is:

• A)inflation,corporate bonds,Treasuries,small company shares,large company shares.
• B)Treasury bills,inflation,small company shares,large company shares.
• C)Treasury bills,corporate bonds,government bonds,large common shares,small company shares.
• D)Treasury bills,government bonds,corporate bonds,large common shares,small company shares.
• E)There is no ordering.

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Definitions:

Competitive Advantage

Competitive advantage is the unique edge that a company has over its competitors, allowing it to generate greater sales, attract more customers, or achieve superior margins.

Environmental Scanning

The process of gathering information about an organization's external environment to identify opportunities and threats.

Competitive Advantage

A unique attribute or capability that gives an organization an edge over its competitors.

Stock Prices

The monetary value assigned to a share of stock in the publicly traded market, reflecting the market's current valuation of that company.